Dishman Pharmaceuticals acquires IO3S, Switzerland

Mumbai: Dishman Pharmaceuticals & Chemicals Ltd has acquired the Switzerland-based contract research company, I03S Ltd, located in Bern. Dishman has acquired IO3S through its 100 per cent wholly owned Switzerland-based subsidiary Dishman Switzerland Ltd.

This will strengthen the Indian company''s activities in contract research and manufacturing in the specialised field of ozone chemistry; as well as further improve its European and US interface with customers. Dishaman has recently invested in a large scale ozone chemistry plant at Bavla.

The assets base of IO3S (excluding the value of IP and without revaluation of assets) is currently around $2 million, though Dishman has negotiated the cost of acquisition below this price. To start with. Dishman has taken over 51-per cent of the Swiss company''s shares with voting rights from IO3S''s present owners with the right to take over the remaining 49 per cent at the same price at its own option within 12 to 18 months. The acquisition of IO3S in the hands of the Dishman will be as a debt free company.

According to Dishman, IO3S is the only company in the world in the field of consultancy and research in ozone chemistry. It has a fully developed laboratory as well as a pilot plant for ozone-based reactions. IO3S has created a strong intellectual property rights base, having serviced major global pharma MNCs and specialty chemical companies. At the time of acquisition the Swiss company had an order book covering contract research assignments for several molecules for multinational dug firms.

Dishman says that the IO3S acquisition is a major step for it in its contract research and contract manufacturing strategies and the Indian company intends to retain all key technical personnel of IO3S, including the promoter of IO3S. IO3S, it says, has an excellent track record of customer relationships with pharma and chemical multinationals through its strong market presence in Europe and the US. Since contract research is the best way forward for getting contract manufacturing business, IO3S''s CR assignments will provide scale-up opportunities within Dishamn''s manufacturing plants.